In a significant move for Texas homeowners, the Texas Senate has unanimously passed Senate Bill 4 and Senate Joint Resolution 2 with a vote of 30-0. These measures aim to provide substantial property tax relief by raising the homestead exemption from $100,000 to $140,000. This increase is the largest in state history.
Senator Paul Bettencourt (R-Houston), who authored the bills, expressed his satisfaction with the outcome. "Today, the Texas Senate delivered a win for homeowners statewide. By passing SB 4 and SJR 2, we are putting real dollars back into the pockets of Texans while ensuring our schools remain fully funded," he stated. He added that the average homeowner could expect an annual savings of nearly $363.
Charles Scoma from the Texas Silver-Haired Legislature highlighted during testimony that this relief is particularly important for seniors in Texas, many of whom live on limited incomes. “I estimate 80-90% of Texas seniors will pay no property taxes at all,” he said.
Lieutenant Governor Dan Patrick praised Senator Bettencourt's efforts and noted that when combined with previous tax cuts from 2023, homeowners would see a total tax cut of $1,762.87. "I thank Sen. Paul Bettencourt for his hard work in carrying Senate Bills 4 and SJR 2," Patrick remarked.
The passage of these bills builds upon past legislative actions like SB 2, which was approved by voters in November 2023 as part of a historic property tax reduction effort totaling $22.7 billion. The new legislation further reduces school property taxes and ensures long-term relief for homeowners in Texas.
Senate Bill 4 works alongside Senate Bill 1 to provide additional savings through school district tax rate compression amounting to $133.13 for average homestead properties, bringing total savings to approximately $496.57.
With unanimous approval from the Senate, SB 4 and SJR 2 now proceed to the Texas House where they are expected to receive strong bipartisan support. If successful there, Texans will vote on a constitutional amendment in November 2025 aimed at securing long-term tax relief.
"In 492 school districts, the 140k Homestead exemption will mean the average homeowners will pay no school property taxes in 49% of state schools districts," concluded Senator Bettencourt.
The bill includes provisions to ensure funding shortfalls for ISDs due to increased exemptions are covered by the state while maintaining protections for over-65 and disabled homestead exemption owners.
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